What are the sliding scale fees?
Sliding scale fees are a form of price discrimination in which fees for goods and services change according to the buyer's ability to pay. People who have higher incomes or assets are charged more than those who have less. Sliding scale fees are used in a number of contexts and are used for both non -profit and profit purposes. Higher fees of richer users of the Group Service Services subsidize services for poorer users who could not afford to pay the full price, allowing these organizations to help people who could not afford to pay market value for the service while bringing enough income to continue operation. Some schools and universities offer, for example, reduced tuition fees for low -income students. Sliding scale fees are common in medical facilities. Religious institutions that offer services such as childcare or education often charge by reception.AKO is a professional association, political groups and clubs, and also based on a sliding scale. Government services partially supported by user fees can also have sliding fees. Some adoption agencies also charge by income.
Services from experts working in certain fields often have moving fees. In some cases, the sliding scale also adapts to changes in the client's income that will cause him not to pay originally agreed fees such as loss of employment. This is a common practice between advisors and therapists, and some doctors and lawyers are also done.
This can be done for business purposes because it increases the number of people who are potential clients, maintain relationships with clients who have suffered a temporary financial misfortune, and bring new clients due to recommendations from existing clients or create a positive reputation. In some countries cane providing services needed with reduced costs cause the professional to cause tax deductions for charity giving. This can also be done for altruistic reasons for services to be available to people who have limited resources or because of a mixture of charity and business motifs.
The use of sliding scale fees is limited by the potential of abuse and the cost of gathering the information necessary to prevent it, because the ruthless person has the motivation to lie about his income to mined fees. For example, retail stores could potentially increase the number of profitable sales they make by billing on a sliding scale, as they would have more potential customers, but the costs of time and money to obtain the necessary information would be unbearable. Profits from other sales would not be enough to confirm the real economic status of the customer worth the expenses for the seller, and the discount would often be too small to be worth the time, energy and victim withOskle and comfort from the customer who is needed to document his / her reception or wealth.
Sliding scale fees are therefore most often found in situations where the relationship between the buyer and the seller is taking place and includes enough money to issue problems with the Buyer's economic needs. Examples are the relationship between a lawyer or advisor and his clients or between school and her students. Sliding scale fees may also occur where the relationship does not necessarily take place, but the cost of one service is potentially very high, as is the case with many medical procedures or adoption of the child. They are also used in situations where the buyer is trustworthy to tell the truth because of the already existing social bonds with The Seller, as is often the case with membership fees for social groups and clubs or services provided by religious institutions to members of his choir.